Novices who want to manage investment funds are generally confused, mainly because they don't understand the funds, including the operation mode, the types of funds or the risk-return characteristics of funds and so on.

Choosing different types of funds mainly starts with their own risk preferences. Different types of funds have different risks and different income characteristics. The general principle is that if you take higher risks, you will get potentially high returns.

Medium and high-risk funds such as stock funds and hybrid funds mainly invest in the stock market, which has a great influence on them. If you want to invest in the stock market, but you don't have time to manage it yourself, you can consider this kind of fund.

Low-risk funds, such as bond funds, mainly invest in the bond market and rarely invest in the stock market. This kind of fund is relatively stable with little fluctuation, and it is normal that the average annual income is 5- 10%. In some years, the income will be higher than 10%, and in some years, the income may be negative.

Risk-free funds, such as money market funds, have a slightly higher income level than 1 year time deposits. It is a substitute for savings.

You should first understand your reasonable needs and personal situation, and then decide your suitable fund type.